Two Canadian cannabis companies have each been granted a six-month extension by the Nasdaq to regain compliance after their respective stock prices fell below the exchange’s minimum bid rule.
The Nasdaq requires issuers to maintain a minimum bid price of at least $1 per share.
Both companies received letters last summer warning of the noncompliance, according to the stock exchange’s list of noncompliant issuers.
Sundial has until Aug. 8, 2022, to regain compliance, meaning the bid price for the company’s shares must close at or above $1 for a minimum of 10 consecutive trading days.
Neptune has until Aug. 29, 2022.
The shares will continue to be traded on the exchange in the meantime.
In a news release, Sundial said it has given written assurance to the Nasdaq “that it will, if necessary, implement available options to regain compliance with the minimum bid price requirement, including a reverse stock split.”
Sundial produces and sells adult-use cannabis.
Neptune received its license to process cannabis in January 2019 and its cannabis sales license in June 2020. The company says it sells marijuana products in four Canadian provinces.
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Quebec-based Hexo Corp. was put on the Nasdaq’s list of noncompliant issuers in January and was given 180 calendar days to regain compliance.
Hexo is asking shareholders to greenlight a reverse stock split to boost its shares above the $1 requirement.